It provides seed-stage financial support to early-stage startups that have a validated idea or early prototype but cannot yet attract angel or venture capital investment. The scheme targets approximately 3,600 startups through a network of around 300 DPIIT-approved incubators across India. As of December 2024, over 2,600 startups have received ₹467.75 crore in support, and more than 1,200 women-led startups have been funded. How Does SISFS Work? Funds are not disbursed directly by the government. DPIIT allocates capital to approved incubators, which then evaluate applications and release funds to selected startups. An Experts Advisory Committee (EAC) oversees incubator selection and scheme implementation. Each incubator constitutes an Incubator Seed Management Committee (ISMC) — comprising domain experts, VC and angel investor representatives, state government nominees, and experienced entrepreneurs — to evaluate and select startups for funding. How Much Funding Can a Startup Get? | Support Type | Amount | Purpose | |---|---|---| | Grant | Up to ₹20 lakh | Proof of concept, prototype development, product trials | | Debt / Convertible Debentures | Up to ₹50 lakh | Market entry, commercialization, scaling | Grant funds are released in milestone-based tranches. Debt instruments carry interest at no more than the prevailing RBI repo rate, a tenure of up to 5 years, and a moratorium of up to 12 months. Loans are unsecured — no collateral or personal guarantee required. Funds go directly to the startup's bank account. A startup can avail both the grant and the debt support — once each — under the scheme. Who Should Apply? SISFS is for tech-driven startups at idea or MVP stage that are DPIIT-recognized and less than 2 years old at the time of application. The scheme is sector-agnostic, but incubators give preference to startups in healthcare, agriculture, biotech, social impact, clean energy, waste management, water management, financial inclusion, education, mobility, defense, and space. Documents Required DPIIT recognition certificate Certificate of incorporation PAN card and Aadhaar of founders Shareholding pattern / cap table showing ≥51% Indian promoter holding Business plan or pitch deck Prototype details or proof of concept documentation Financial projections and fund utilization plan Bank account details (cancelled cheque or statement) Frequently Asked Questions Can individual entrepreneurs apply for SISFS? No. Only DPIIT-recognized entities incorporated as Private Limited Companies, LLPs, or Registered Partnerships are eligible. Sole proprietors and individuals cannot apply. How many incubators can I apply to? You can apply to up to 3 participating incubators simultaneously. If more than one selects you, funding comes from your highest-preference incubator that selects you. Is DPIIT recognition mandatory? Yes. Your startup must be recognized under Startup India before applying. You can get recognition at startupindia.gov.in. Is there any application fee? No. Zero fees at every stage — application, selection, disbursement, and monitoring. Incubators are prohibited from charging any fees to applicants or beneficiaries. What if my startup has already received government funding? You are ineligible if you have received more than ₹10 lakh in monetary support from any Central or State Government scheme. Prize money, subsidized workspace, lab access, and monthly founder allowances are excluded from this limit. How long does selection take? The ISMC selects startups within 45 days of receiving the application. Can I reapply after a rejection? Yes. You can reapply after 3 months from the date of rejection. What can the funds not be used for? Seed funds cannot be used to create physical facilities or infrastructure. They must be used strictly for the purpose stated in the agreement — R&D, product development, trials, or market entry. What happens if the startup fails? The entrepreneur submits a report covering learnings and reasons for failure, along with an audited utilization certificate. Loans are unsecured, so no personal liability applies beyond the incubator agreement terms.